​Want to replace your company’s landline? Consider VoIP

Voice over Internet Protocol (VoIP) is a relatively new phone technology that is replacing traditional landlines for many small businesses — and for good reason.

VoIP can be more cost effective, requires less maintenance, and is more flexible because it works over an Internet connection as opposed to traditional phone systems.

The following four factors break down the differences between VoIP and traditional Private Branch Exchange (PBX) phone systems so you can see which one is right for you and your small business.

Cost

With VoIP systems, there are two main costs. The first is for the actual subscription for service. The fee is generally $20 to $30 per line per month. This comes with a wide variety of services, many similar to those that you would get with a traditional PBX system.

The second cost is for the handsets themselves, and the cost varies widely. If you don’t need many extra features, they can cost as little as $50, but they can cost thousands if more sophisticated varieties are needed.

Traditional phone lines can range from $35 to $45 per month per line, and the handsets can range in price as well. If you need things like call-transfer and phone directories, the handsets can cost into the thousands.

All of this is similar to VoIP — however, this system must be installed and maintained by an expert, which is an ongoing cost that the VoIP system doesn’t have.

Call Quality

This is an area where the two types of phone systems have traditionally varied greatly — however, increased Internet speeds have allowed for the improvement of VoIP call quality. As long as your Internet bandwidth can handle your call volume, and you don’t meet the data cap of your network service provider, there is no reason to worry about your call quality.

Marc Prosser is the co-founder of Marc Waring Ventures, a niche online publishing company serving the financial and small business communities. Previously, Prosser was the chief marketing officer of the currency brokerage firm FXCM.